Why NYC mayor Zohran Mamdani and Amazon are at odds
What's the story
New York City Mayor Zohran Mamdani has endorsed the Delivery Protection Act, a controversial legislation that would require Amazon and other major delivery companies to directly employ thousands of drivers. The bill, which is backed by the Teamsters union, seeks to ban subcontracting of core warehouse and delivery work at last-mile facilities. It would also mandate that workers be directly employed by the facility operator.
Accountability concerns
Mamdani slams Amazon for exploitative subcontracting practices
Mamdani has criticized corporations like Amazon for using exploitative subcontracting practices to avoid accountability.
He said, "Corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting."
The mayor described the bill as "common-sense regulation that protects delivery workers, safeguards the communities where these facilities operate and ensures that the corporations benefiting from workers' labor are responsible for the consequences of their business practices."
Cost implications
Bill could add $664 to annual delivery costs
A study by consultancy AKRF has revealed that the Delivery Protection Act could add an extra $664 per year to New York households' delivery costs.
Business Council of New York State spokesperson Steve Smith said, "This law is just going to raise prices for consumers."
The bill has also drawn criticism from Amazon, which works with over 40 local Delivery Service Partners employing more than 5,000 people in NYC.
Job concerns
Amazon warns of job losses
Amazon has warned that the Delivery Protection Act could put more than 5,000 contractor jobs at risk.
The company has also said it may have to consider moving delivery operations outside NYC due to the legislation.
Kelly A. Nantel, an Amazon spokesperson, said, "We're committed to creating good jobs... But as written, this legislation would directly undermine that commitment - threatening the small businesses that deliver to customers."
Legislative backlash
Opponents plan press conference to urge leaders to reject measure
Opponents of the Delivery Protection Act, including package delivery workers and small-business owners, are planning a press conference to urge city leaders to reject the measure.
The New York Delivers coalition has warned that the legislation could threaten thousands of delivery jobs and small businesses while raising costs for New Yorkers.